1. In your own words, explain the difference between the inventory of a merchandising and manufacturing company and the reasons for it.

2. In your words, describe the types of inventory (i.e., raw materials, etc.) the fictional company (FSK TRADERS) has.

3. Which inventory method, periodic or perpetual, do you recommend for your company? Explain why youve chosen it. In your own words, also explain the pros and cons of each type when explaining your choice.

4. Once youve chosen your preferred inventory system, prepare 5 original example journal entries for it. If you have chosen a perpetual system, refer to Chapter 4 pp. 155-165 in your textbook as a guide. If you have decided to apply a periodic system, refer to Chapter 4 pp. 172-175 (Appendix 4A) as a guide.

(Answer all the points)